June 3, 2008 (39th Parliament, 2nd Session)


Roy Cullen


Hon. Roy Cullen (Etobicoke North, Lib.)

Mr. Speaker, I listened with great interest to the member for Nanaimo—Cowichan, particularly the reference she made earlier to employment insurance. I thought I would take this opportunity to clarify the framework under which employment insurance works.
The member talked about the employment insurance fund. In fact, in the days of the Liberal government there was no EI fund per se. There was a notional fund. The Conservative government is planning to set up a crown corporation or something, but the previous government had a notional fund.
In the late 1980s the auditor general requested that the government consolidate the EI fund, or notional fund, into consolidated revenue because the fund was in deficit. The EI fund, notional fund, was in deficit from the mid 1980s to the early 1990s. At that point, I do not recall the unions or management clamouring to Ottawa to say that they would make up the deficit.
Yes, it is true that the EI surplus did form part of consolidated revenue and helped the government deal with the $42 billion deficit left by the Conservative Party, but, as I said earlier, there was a string of seven or eight years when the EI fund was in deficit and there was a certain logic to allowing that to happen. Then when our government came in, it reduced the employment insurance premiums every year. We were able to get it to the point where now the Conservative government can look at it as a self-sustaining insurance fund.
Is the member aware of the history of EI fund and notional fund and would she look at it in the context of her remarks earlier, when she seemed to intimate that the surpluses were from the wages of workers and were exploited by the Government of Canada?

Topic:   Government Orders
Subtopic:   Budget Implementation Act, 2008
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